How this number is made
A savings rate is what you did not spend, divided by income. Use the same period for both, a month or a year. A rate on take-home pay is not the same as a rate on gross pay. Be consistent.
- Saved means transferred to savings or investments, or used to pay principal. Interest is not savings.
- Debt payments of interest are spending. Principal is closer to saving. This page uses whatever you type as saved.
Formula
Savings rate = saved ÷ income.
Worked example
With the figures already in the form, savings rate is 15.0%.
Questions
Should the match count?
An employer match is income you saved only if you also count it in income. Otherwise you inflate the rate. Pick one treatment and keep it.
What rate is enough?
Enough for the future spending you have in mind. The FIRE page turns a spending number into a portfolio. A universal percent is a slogan.